Here's why ASX 200 energy shares are in the spotlight

Why these major energy exporters are in focus right now…

Oil miner holding a laptop and mobile phone looks at his phone and sees the falling oil price and falling Woodside share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) energy shares are on the move this morning. Shares in some of the biggest Aussie oil and gas explorers and producers have edged higher in early trade on Thursday despite broader market weakness.

Here's why the spotlight is on some of the biggest names amongst the ASX 200.

Why ASX 200 energy shares are in the spotlight

The term "energy crisis" is cropping up in all sorts of media right now. One of the reasons that ASX 200 energy shares like Oil Search Ltd (ASX: OSH) have been rocketing higher recently is because of this crisis.

In Europe, energy demand is far outstripping supply at the moment. This market imbalance has seen energy prices shoot through the roof. Global benchmark Brent crude prices recently topped US$80 per barrel for the first time in 3 years.

According to an article in the Australian Financial Review (AFR), Australia could have an opportunity amid the looming global crisis. As a major energy exporter, gains from energy supply could help offset the recent iron ore price slump.

As gas and coal prices continue to surge, ASX 200 energy shares that export to other countries could be thrust into the spotlight. That includes the likes of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).

Australia was the largest supplier of China's imported liquid natural gas (LNG) last year, meaning any price rise could be good for these exporter's revenue.

Continued supply disruptions, including in the major production regions of Russia, have sent petrol and gas prices surging in Europe. Given the significant production capacity that these ASX 200 energy shares boast, they could be in the spotlight for quite some time to come.

Foolish takeaway

ASX 200 energy shares have experienced an up and down year on the markets. News of mergers has captured investors' attention while volatile pricing has made them worth watching.

With the broad market experiencing heavy losses in early trade, these Aussie energy companies remain worth watching throughout 2021.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

Worker inspecting oil and gas pipeline.
Energy Shares

Are Santos shares higher on quarterly update?

Let’s find out how the share price is moving following today’s announcement.

Read more »

Man with rocket wings which have flames coming out of them.
Energy Shares

Macquarie forecasts 61% upside for this ASX All Ords energy stock

Here's why the broker is so positive on the stock.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Energy Shares

Why this ASX uranium stock could rocket 100%+

Let's see why this speculative stock is being tipped to double in value by Bell Potter.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Energy Shares

Macquarie tips 23% upside for this ASX All Ords mining stock

Let's see why the broker thinks this stock could be a top buy.

Read more »

a group of three electricity workers stand smiling wearing hard hats and high visibility vests in front of an array of high voltage power equipment.
Energy Shares

Macquarie raises price target on Origin Energy shares

The broker just raised it's price target. Here's why.

Read more »

A smiling woman holds a Facebook like sign above her head.
Energy Shares

Bell Potter says this ASX 200 uranium stock is a top buy

Let's find out why the broker is feeling bullish on this stock.

Read more »

Worker on a laptop at an oil and gas pipeline.
Energy Shares

Boss Energy shares have surged 93% since April. Here's what Macquarie expects now

Boss Energy shares remain a favourite for ASX short sellers. Are they in a for a payday or headed for…

Read more »

A young man wearing glasses writes down his stock picks in his living room.
Energy Shares

3 reasons to buy this beaten down ASX 200 coal stock today

A leading expert forecasts a big potential rebound ahead for this quality ASX 200 coal stock.

Read more »